By Chinwendu Obienyi

Demonstrating remarkable earnings momentum, Wema Bank posted a profit before tax of N102.51 billion, reflecting a 135% surge from the N43.59 billion recorded in 2023. This outstanding profitability underscores the Bank’s operational efficiency, prudent risk management, and revenue optimization strategies. In recognition of this exceptional performance, Wema Bank has proposed a final dividend of N1.00 per share, reaffirming its commitment to rewarding shareholders.

The Bank’s balance sheet exhibited resilience and diversification, with total assets expanding by 60% to N3,585.05 billion, compared to N2,240.06 billion in FY 2023. Customer deposits increased significantly by 36% year-on-year, reaching N2,523.82 billion, up from N1,860.57 billion. Likewise, loans and advances grew 50% to N1,201.21 billion, reflecting the Bank’s continued commitment to financing economic growth. The Non-Performing Loan (NPL) ratio stood at a prudent 3.86% at year-end, reinforcing the Bank’s disciplined risk approach.

Wema Bank also recorded substantial revenue growth, with Gross Earnings rising by 92% to N432.34 billion from N225.75 billion in FY 2023. Interest Income mirrored this upward trajectory, increasing 92% year-on-year to N353.54 billion, while Non-Interest Income climbed 91% to N78.80 billion. The Bank’s profitability metrics remained strong, with Return on Average Equity (ROAE) at 43.60%, Return on Average Assets (ROAA) at 2.96%, Capital Adequacy Ratio (CAR) at 19.67%, and a Cost-to-Income Ratio of 56.23%, reflecting improved efficiency.

Speaking on the stellar performance, Moruf Oseni, Managing Director/CEO of Wema Bank, credited the Bank’s success to strategic execution in core areas such as risk management, customer relationship management, and digital banking transformation. He stated, “Our 2024 results affirm our commitment to operational excellence, innovation, and customer-centric banking. The significant growth across key financial indicators—a 135% rise in profit before tax, a 92% increase in Gross Earnings, and a 60% expansion in Total Assets—is a testament to our agility and resilience in navigating the financial landscape.”

Oseni further emphasized Wema Bank’s leadership in digital banking, noting that “ALAT, our flagship digital platform, remains a game-changer in financial services, particularly among Nigeria’s youthful population. A key highlight is ALAT XPlore, the first licensed banking app designed for teenagers aged 13 to 17, fostering financial literacy and responsible money management.” Looking ahead, Wema Bank has announced plans to commence a N150 billion Rights Issue in April 2025, a strategic move aimed at strengthening its capital base, enhancing lending capacity, and accelerating digital transformation. This initiative aligns with the Bank’s vision for long-term growth and market expansion.

Wema Bank’s FY 2024 financial performance underscores its strategic resilience, customer engagement, and digital innovation. With a focus on continued profitability, enhanced service delivery, and digital expansion, the Bank is well-positioned for sustained leadership and value creation in Nigeria’s financial sector.